Montana § 33-4-406 - Reserves -- Cash Premium Plan
Full text of Montana Montana Code Annotated § 33-4-406 — Reserves -- Cash Premium Plan, with citation guidance and answers to common questions.
§ 33-4-406. Reserves -- Cash Premium Plan
Reserves -- cash premium plan. Each insurer transacting business on the cash premium plan shall maintain the following reserves: (1) a loss reserve, in amount reasonably adequate to pay in full all losses already incurred but currently unpaid. The amount subsequently paid on such losses shall be credited against this reserve. (2) a reserve for unearned premiums, which reserve shall be computed at 50% of net premiums (gross premiums less premiums returned) charged and collected for unexpired policy periods that commenced during the calendar year covered by the financial statement plus 100% of such net premiums charged and collected in advance for policy periods that are to commence after such calendar year. In the alternative, the insurer may at its option compute its entire reserve for unearned premiums as the aggregate amount of the pro rata unearned premiums for each policy in force as at the end of the calendar year to be covered by the financial statement.
Source: official Montana text · Last verified 2026-08-27
Frequently Asked Questions About Montana § 33-4-406
What does Montana Code Annotated § 33-4-406 cover?
Section 33-4-406 ("Reserves -- Cash Premium Plan") is part of the Montana Code Annotated, the codified statutory law of Montana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Montana § 33-4-406?
A common citation format is "Montana Code Annotated § 33-4-406" (Montana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Montana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Montana official source linked on this page or consult a licensed Montana attorney.
How does Montana § 33-4-406 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Montana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Montana.